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Suppose we have a simple exchange economy(with 100 agents and 2 goods) where all agents have Cobb-Douglass preferences (preference represented by Cobb-Douglass utility function). Show
Suppose we have a simple exchange economy(with 100 agents and 2 goods) where all agents have Cobb-Douglass preferences (preference represented by Cobb-Douglass utility function). Show that, in this economy, all goods are desirable. (a good is desirable if, whenever the price of that good is zero, the demand of that good must exceed the aggregate endowment of it.)
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